HONG KONG, Nov 30, 2021 – (ACN Newswire) – EC Healthcare (the “Company”, which together with its subsidiaries is referred to as the “Group”, SEHK stock code: 2138), the largest non-hospital medical group in Hong Kong*, is pleased to announce that the Group enters into an agreement to acquire 55% of the issued share capital of Bayley & Jackson Dental Surgeons Limited (the “Target Company”), for a total consideration of approximately HK$129 million, which shall be satisfied as to approximately HK$ 119 million in cash and as to approximately HK$10 million by the allotment and issue of Consideration Shares at HK$ 12.557 per share.
The Target Company is a dental services chain operator with a long-standing history in Hong Kong providing dental services in Hong Kong since 1958. As of the date of this announcement, the Target Company operates seven dental clinics located in Central, Tsim Sha Tsui, Mong Kok, Repulse Bay and Clean Water Bay of Hong Kong with 32 practicing dentists including dental general practitioners and specialists. According to the unaudited financial information for the year ended 31 March 2021, the profit after tax of the Target Company amounted to HK$15.18 million. Upon completion of the acquisition, the financial result of the Target Company will be consolidated into the consolidated financial statement of the Group. The Target Company guarantees to the Group with an aggregate net profit for the seven financial years ending 31 March 2029 should be no less than HK$120 million.
The Target Company has long-standing history, unique and well recognized brand and owns an extensive loyal corporate client base serving companies such as The Hong Kong Polytechnic University, Cathay Pacific Airways Limited and MTR Corporation Limited. Leveraging on its operational excellence and efficiencies, the Group will benefit from the Target Company’s brand equity and continue to empower the Group’s existing dental-related medical assets, improve the overall efficiency of the Group’s dental medical assets and enhance the service capability as a multi-specialty medical service provider, thus further enhancing the customer retention rate and the overall profitability of the Group.
Mr. Levin Lee, Executive Director and Chief Finance Officer of EC Healthcare said, “This acquisition will help expand the Group’s existing dental business, deepen and enhance the service capability of the Group’s medical services segment, thereby further strengthening its leadership in the discretionary medical market. Looking ahead, the Group will be well-positioned to continue exploiting the reciprocal business interaction between dental and medical aesthetic businesses to create more value. Meanwhile, the Group will complement with advancement in information technology, branding, and service to build the enclosed healthcare ecosystem and to further consolidate the healthcare market.”
About EC Healthcare
EC Healthcare is Hong Kong’s largest non-hospital medical service provider*, leveraging its core businesses of preventive and precision medicine, and committed to developing medical artificial intelligence by integrating its multi-disciplinary medical services. The move, which is supported by the Group’s high-end branding and quality customer services, is aimed at offering customers safe and effective healthcare and medical services with professionalism.
The Group principally engages in the provision of one-stop medical and health care services in Greater China. The Group provides a full range of services and products under its well-known brands, including those of its one-stop aesthetic medical solutions provider DR REBORN which has ranked first in Hong Kong by sales for years, primary care clinics jointly established with Tencent Doctorwork, chiropractic services centre SPINE Central, New York Spine and Physiotherapy Center NYMG, health management centre re:HEALTH, a vaccine centre Hong Kong Professional Vaccine HKPV, a comprehensive dental centre UMH DENTAL CARE, a diagnostic and imaging centre HKAI, an oncology treatment centre reVIVE, a day procedure centre HKMED, a specialty clinic SPECIALISTS CENTRAL and NEW MEDICAL CENTER, obstetrics and gynaecology specialist ZENITH MEDICAL CENTER AND PRENATAL DIAGNOSIS CENTRE, specialists central, a paediatric center PRIME CARE, cardiology center HONG KONG INTERNATIONAL CARDIOLOGY CENTER, PathLab Medical Laboratories, a professional hair care center HAIR FOREST, Ophthalmology Center VIVID EYE and EC Veterinary Hospital and Imaging Center.
*According to independent research conducted by Frost and Sullivan in terms of revenue in 2019 and 2020
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Topic: Press release summary
Source: EC Healthcare
Sectors: Healthcare & Pharm
From the Asia Corporate News Network
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